GREENFUEL BRIQUTTES

BUSINESS PLAN
PROJECT IV

PRESENTED BY

MAUREEN MURUGI MAINA

BBAMLMR167324

A project submitted to St Paul’s University Limuru Campus

School of Business in partial fulfilment requirement for the
Bachelors in Business Administration (BBAM)

St Paul’s University Limuru Campus

13th August, 2025

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DECLARATION
I declare that this is my original work and it has not been submitted to any other university other
than St Paul’s University for academic credit.

Sign

Date

This business plan project report has been presented for examination with my approval as
appointed by my supervisor.

Sign

Date

Elizabeth Kimaru

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ACKNOWLEDGEMENT
I acknowledge my lecture Madam Elizabeth Kimaru for guiding me accordingly on how to work
on this project step by step, my classmates Judith Mutai and Jane Kinuhi for helping me in areas
I didn’t understand well and my parents Dr and Mrs Maina for supporting me in every way they
could.

EXECUTIVE SUMMARY
A sustainable energy company called GreenFuel Briquettes is based in Kenya and uses locally
obtained agricultural waste, including sawdust, sugarcane bagasse, and maize cobs, to create
premium biomass briquettes. In addition to addressing deforestation, carbon emissions, and
rising fuel prices, the company creates green jobs in local communities by providing a cost-
effective, clean-burning substitute for firewood and charcoal. The facility, which has drying
racks, moisture meters, briquetting presses, and crushers, adheres to strict quality control
protocols to guarantee longevity, high calorific value, and little smoke emissions. GreenFuel's
activities are driven by sustainable sourcing, process optimization, and adherence to Kenyan and
ISO standards, and its target market consists of households, small enterprises, and institutions.
According to financial estimates, founder equity, grants, and microloans helped the company's
sales expand from KES 600,000 in Year 1 to KES 780,000 in Year 2, and its profitability
increased from 5.8% to 9.6%. With a high environmental and social impact and a scalable
expansion strategy, GreenFuel wants to dominate Kenya's clean energy market.

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TABLE OF CONTENT

Contents
No table of contents entries found.

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 CHAPTER ONE
BUSINESS DESCRIPTION
1.1 Business Name and Structure

The name "GreenFuel Briquettes" was chosen because it clearly shows that the company's main
goal is to provide environmentally friendly fuel made from farm waste. Fuel signifies the energy
product, "green" highlights sustainability, and "briquettes" refers to the clean-burning substitute
for charcoal. Due to its low cost, simplicity, and ease of registration, the business will initially
function as a sole proprietorship, which is perfect for the starting stage. Complete control and
flexibility are made possible by this structure, which is crucial in the beginning. In order to boost
reputation, attract investment, reduce liability, and facilitate growth, the company will eventually
become a Private Limited Company (Ltd). Kenya's eCitizen platform will be used for
registration, which will begin with name reservation and proceed to sole proprietorship
registration (about KES 950), county business permit procurement (KES 10,000–20,000), and
tax compliance using a KRA PIN. A memorandum of association, director information, and
business details must all be submitted via the same platform in order to register as a Limited
business in the future. Both initial affordability and long-term scalability are supported by this
legal framework.
1.2 Business Location and Address
GreenFuel Briquettes will be situated on the borders of Nakuru Town West Sub-County in
Kaptembwa, a heavily populated peri-urban area in Nakuru County. Because of its advantageous
location between the commercial areas of Nakuru town and neighboring agricultural centers like
Rongai, Molo, and Njoro, Kaptembwa was chosen with consideration. These regions generate
significant amounts of agricultural waste, particularly sawdust, wheat husks, and maize cobs,
which provide as a consistent source of raw materials for the manufacturing of briquettes. The
primary market for reasonably priced and hygienic briquettes is the region's extensive informal
settlements and small-scale food sellers (hotels, chapati stalls, and mama mbogas), all of which
rely significantly on charcoal. In order to save transportation costs and promote logistical
efficiency, Kaptembwa provides reasonably priced workshop space, convenient road access, and
close proximity to the expanding Nakuru CBD. In addition to being a Kenya Vision 2030
designated urban center, Nakuru County is well-positioned to launch a green energy project due
to the government's increasing interest in environmental sustainability. There are also a number
of youth organizations, SACCOs, and NGOs in Nakuru that can collaborate on manufacturing,
distribution, or raising awareness.

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1.3 History and Background Information of the Owner
While living in a remote area of Kenya, where rising fuel prices and widespread deforestation
were negatively affecting households and small businesses, the concept for GreenFuel Briquettes
was formed out of personal experience and environmental observation. A search for cheaper,
cleaner alternatives was brought about by the health issues associated with indoor air pollution
and the environmental damage caused by cutting down trees for charcoal. At the same time, I
watched as massive quantities of agricultural waste, including sawdust, sugarcane residue, and
maize cobs, were burned or thrown away following harvest. This led to the understanding that
turning this waste into energy-efficient briquettes could address waste management issues and
lessen dependency on wood fuel at the same time. I have a strong understanding of pollution
prevention, climate change mitigation, and sustainable energy systems thanks to my
environmental science background. Additionally, I have worked directly on community-based
environmental projects, which has given me useful expertise in field implementation, public
education, and ground mobilization. In addition, I have financial management and project
planning abilities, which are essential for a startup's daily operations, resource allocation, and
budgeting. Through workshops and green enterprise programs, I have received training in waste-
to-energy technologies, which has equipped me with the technical know-how to supervise
production operations. I am in a unique position to close the gap between waste producers
(farmers) and energy consumers (households and vendors) because of my leadership expertise in
youth and women empowerment initiatives, as well as my in-depth knowledge of regional
agricultural methods and rural marketplaces. Together, these backgrounds and abilities offer a
solid basis for starting and expanding GreenFuel Briquettes into a profitable and socially
conscious company.
1.4 Products and Services

GreenFuel Briquettes will provide environmentally friendly cooking fuel products derived from
agricultural waste, including sawdust, wheat husk, sugarcane bagasse, and maize cobs.
Compressed biomass briquettes for domestic usage as well as small commercial businesses like
food vendors and institutions will be the primary product. The company will provide bulk
packing for resellers, larger commercial briquettes for establishments like schools and poultry
farms, and regular briquettes for home cooking. GreenFuel will provide services including
customer education on clean cooking methods, collaborations with neighborhood women's and
youth organizations for distribution and sales, and tailored supply plans for organizations in
addition to tangible goods. The company's primary selling point is offering a less expensive,
healthier, and more ecologically responsible substitute for charcoal. Our briquettes burn hotter
and longer, emit less smoke, are 30–40% less expensive than charcoal, and are created entirely of
recycled garbage, so no trees are torn down in the process. All labor and raw materials are
obtained locally, promoting economic development and community empowerment. The
company will use the right technologies to improve service delivery and product quality.
Initially, production efficiency and consistency will be guaranteed by a manual or semi-
automated briquetting machine. The quality of the raw materials and completed briquettes will
be tested using moisture meters.

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A simple ordering system based on a mobile device or USSD, simple tools for tracking customer
data, and digital marketing via Facebook and WhatsApp to reach clients in rural and peri-urban
areas are all examples of technology that will be available in the short term. GreenFuel
Briquettes will develop its goods and services over time. We will concentrate on manual
manufacture and direct sales of household and commercial briquettes in the near future (0–12
months). We intend to use semi-automated machinery to increase output in the medium term
(one to three years), provide retail distribution through agro-shops and kiosks, start a delivery
service, and reach institutional customers. Our long-term (3–5+ year) goals include diversifying
into fuel-efficient cookstoves, carbonized briquettes, and bio-pellets, as well as launching a
mobile app for ordering and customer interaction. Additionally, we intend to investigate carbon
credit earnings through environmental certification and use a franchising model to grow
regionally. GreenFuel will remain dedicated to cost, sustainability, and social impact at every
stage.
1.5 Justification and Viability of the Idea

GreenFuel Briquettes is a very viable business concept that is appropriate for the Kenyan
environment and sustainable. Technically, the company uses straightforward, locally accessible
equipment, like a manual or semi-automated briquetting press, which can be operated by workers
with local training and requires little electricity. In the agricultural regions surrounding Nakuru,
especially in Molo, Njoro, and Rongai, where post-harvest waste is frequently burned or thrown
away, the raw materials—such as maize cobs, sawdust, and sugarcane bagasse—are widely
available. It is perfect for use in peri-urban areas like Kaptembwa because the production process
is simple and only needs a modest workspace. The need for low-cost, clean cooking fuel is
growing quickly as a result of rising charcoal prices and government regulations on
deforestation, making the market viable. Briquettes are a popular choice since households, small
food sellers, and establishments like schools are looking for less expensive and healthier options.
With a production cost of roughly KES 30 and a selling price of KES 50 per kilogram, the
company is profitable and has a large profit margin. Microloans, youth entrepreneurship grants,
and personal savings can all be used to meet the KES 798,000 initial capital requirement.
Significant environmental benefits result from the company's efforts to avoid open burning of
agricultural waste, reduce carbon emissions, and minimize deforestation. Legally speaking, the
company may be registered as a single proprietorship with ease using the eCitizen site, and KRA
compliance and county permissions are simple and reasonably priced. Operationally, the
company will start with a small staff of three people who are trained in sales and production and
are selected from the local community. Strong leadership and execution are guaranteed by the
founder's background in environmental science, project management, and grassroots
mobilization. In order to allow for market research, setup, training, and pilot production, a
realistic startup timetable is three to four months. The time is perfect because of the present
energy crisis, government support for clean fuels, and growing consumer awareness. All things
taken into account, GreenFuel Briquettes is technically sound, ready for the market, mindful of

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the environment, financially viable, and has a great chance of expanding over the long run and
having a positive social influence.

1.6 Industry Structure and Trends

GreenFuel Briquettes will work in Kenya's clean cooking energy sector, which is part of the
renewable energy industry and aims to replace conventional fuels like firewood and charcoal
with sustainable alternatives. More than 65% of Kenyan homes still use wood-based fuels,
despite the sector's rapid growth brought on by urbanization, rising charcoal prices, health
concerns, and government regulations. Briquettes offer a significant possibility with an estimated
15% yearly increase and an unexplored market value of KES 30–40 billion. Threats include
cultural opposition to fuel alternatives, variable product quality, and competition from subsidized
LPG. Opportunities include high consumer demand, government and NGO backing, the
development of green jobs, and possible carbon credit revenue. Through proper registration,
youth enterprise funding, grassroots marketing, and product education, it is possible to eliminate
both official entrance obstacles like licensing, tax compliance, and environmental assessments,
as well as informal barriers like low consumer awareness and little money. The company will
also use covered racks and solar dryers to reduce production risks from weather unpredictability.
GreenFuel has a solid background in environmental research and community involvement, which
positions it to succeed in this industry with a lot of promise.
1.7 Entry and Growth Strategies
With a targeted penetration strategy, GreenFuel Briquettes will enter the market by focusing on
low- to middle-income households and small-scale food vendors in Nakuru County's peri-urban
areas, especially in areas like Kaptembwa and Rhonda where access to clean energy is limited
and charcoal usage is high. To establish recognition and trust, the company will start with direct
sales, product demos, and community involvement. The business will employ low-cost
marketing techniques like branded sacks, WhatsApp groups, word-of-mouth recommendations,
and collaborations with local influencers like boda boda riders, mama mbogas, and youth groups
to serve as agents and distributors in order to acquire traction. In order to promote early adoption,
the prices will be purposefully set 30–40% cheaper than those of charcoal, and new customers
will receive discounts and free trial packs. The company will implement a variety of growth
initiatives using Ansoff's Growth Matrix. In order to sell present charcoal consumers a better,
cleaner, and more cost-effective alternative to their current briquettes, it will first employ market
penetration. Using boda boda distribution, local stockists, and cooperative alliances, GreenFuel
will geographically extend beyond Nakuru to nearby counties including Baringo, Kericho, and
Nyandarua during the market development phase (medium term). Later on, the company will
launch other products such as smokeless pellets, carbonized briquettes, and institutional
briquettes that are specifically made for hotels, poultry farms, and schools. The company will
investigate manufacturing appropriate energy-saving cookstoves and providing clean energy
bundles through carbon credit programs or collaborations with NGOs and climate funds during
the long-term diversification stage. GreenFuel Briquettes will successfully enter the market and

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grow sustainably with this staged approach, satisfying Kenya's increasing need for reasonably
priced, eco-friendly cooking products.

1.8 Mission, Vision and Objectives

The mission of GreenFuel Briquettes is to enable Kenyan communities to embrace sustainable
energy solutions that enhance health, lessen deforestation, and encourage environmental
preservation by offering reasonably priced, environmentally friendly, and clean-burning
briquettes manufactured from agricultural waste. Its vision is to become Kenya's top supplier of
clean, sustainable cooking fuels, changing the way people use energy, creating a circular
economy, and empowering communities and the environment. The company's short-term goals
are to build a customer base of 500 households and 50 small food vendors, reach break-even
cash flow within the first year, establish a fully functional production facility in Nakuru with
trained local staff, and eventually reach a monthly production capacity of at least 2,000
kilograms. In the medium term (one to three years), GreenFuel intends to increase production to
10,000 kilograms per month, diversify its product line to include institutional fuel solutions and
carbonized briquettes, work with government programs and environmental NGOs for funding
and carbon credit initiatives, and expand its market reach to three neighboring counties through
distribution partnerships. The company's long-term goals include becoming a nationally
recognized brand, launching complementary products like clean energy bundles and energy-
efficient cookstoves, becoming certified carbon neutral, expanding operations to serve major
urban centers and institutional clients, and significantly assisting Kenya in reducing indoor air
pollution and deforestation through sustainable energy solutions.

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 CHAPTER TWO
MARKETING PLAN
2.1 Customers
Kenyan homes with low to moderate incomes, small food companies (such as mama mbogas,
roadside restaurants, and food kiosks), schools, and poultry farmers who depend significantly on
biomass fuels for everyday heating and cooking are the main target market for GreenFuel
Briquettes. These groups were selected because they are most impacted by the growing price of
firewood and charcoal, indoor air pollution, and the lack of affordable, clean cooking options.
They are also the most open to solutions that meet their everyday demands and environmental
realities while providing financial and health benefits. These consumers' purchasing habits are
primarily habitual and price-sensitive, with a strong preference for easily accessible and
reasonably priced fuels. Small weekly purchases of cooking fuel are frequently made by
households, who prefer to buy from nearby retailers. In contrast, small enterprises and
establishments such as educational institutions make purchases in bulk or on a monthly basis to
guarantee steady operations. In addition to providing better product longevity and less smoke,
GreenFuel solves their financial issues by providing briquettes that are 30–40% less expensive
per kilogram than charcoal. The company's long-term viability is strengthened by this price-
performance advantage, which also increases customer loyalty, encourages word-of-mouth
advertising, and guarantees consistent repeat business.
The pie charts below shows the anticipated distribution of both short-term and long-term clients
in order to clearly represent the customer base:

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 Short Term Customers
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

10%

15%
40%

35%

In the short-term, 40% of GreenFuel Briquettes' clients will be homes during the experimental
period. Since the cost of charcoal is increasing, these consumers are most likely to switch to
cleaner, less expensive options. 35% of early adopters will be small food enterprises, such as
roadside vendors and mama mbogas. Briquettes are a sensible answer for their economical
lifestyle and daily cooking requirements. 15% of the clientele will be poultry farmers who use
briquettes for heating and brooders. The other 10% will be made up of schools, beginning with
modest establishments that are responsive to innovations that reduce costs.

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 Long Term Customers
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

15%
30%

25%

30%

It is believed that families and small food enterprises would both stabilize at 30% during the next
two to five years. They will continue to be important sources of continuous demand. As more
institutions embrace sustainable energy techniques, the percentage of schools will increase to
25%. A consistent 15% of poultry farmers will still use briquettes for their heating requirements.

This change reflects the plan to reach out to more institutional customers, such as cooperatives
and schools, who provide steady demand and bulk contracts, guaranteeing cash flow stability. In
Kenya, the estimated 10 million households and more than 500,000 small and medium-sized
food vendors that still rely on firewood or charcoal for cooking make up the Total Addressable
Market (TAM) for GreenFuel Briquettes. Given that the average household spends between KES
1,000 and KES 2,500 per month on cooking fuel, this market is estimated to be worth KES 100
billion yearly. High-density areas in peri-urban areas such as Kisumu, Nakuru, and Western
Kenya are the focus of the Serviceable Available Market (SAM), where the demand for
alternative fuels is increasing as a result of tougher regulations around charcoal. About 2 million
homes and 100,000 firms, or 20% of TAM, are represented by this, translating to KES 20
billion yearly.

An approximate 5% of SAM, or 100,000 households and 5,000 companies, is the Serviceable

Obtainable Market (SOM), or the amount of SAM that GreenFuel can realistically acquire in the
first three to five years. This translates to yearly sales of about KES 1 billion. This estimate takes
into consideration early-stage operations' constraints in terms of distribution, production
capacity, and market penetration. In Kenya's changing renewable energy market, GreenFuel
Briquettes positions itself for long-term growth, community impact, and significant market share
by focusing on an underserved but highly receptive client base.
2.2 Market Share

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In Kenya, regular charcoal dealers now hold between 85 and 90 percent of the market for
biomass cooking fuel. GreenFuel Briquettes is entering this industry. Briquettes and LPG are
examples of clean energy options that only make up 10–15% of the market. There is fragmented
competition within the briquette market itself, with numerous small-scale manufacturers
functioning without official distribution routes, reliable quality, or powerful branding. This gives
GreenFuel a strategic point of entry to build a dependable, locally based, and well promoted
substitute. GreenFuel wants to take 1% to 2% of the briquette market in the short term (Years 1–
2) in specific peri-urban areas including Kisumu, Nakuru, and parts of Western Kenya. This
amounts to about 0.2–0.3% of the market for biomass fuel in general. Through pilot production,
grassroots marketing, and collaborations with neighborhood vendors and community
organizations, the objective of this phase is to increase product awareness. The company intends
to strengthen its brand reputation, increase manufacturing capacity, and extend operations in the
medium term (Years 3–5). GreenFuel now aims for 5–7% of the briquette market, which is equal
to 1%–2% of the national market for biomass fuel. Entering into supply agreements with
educational institutions, chicken farms, and institutional kitchens as well as building distribution
networks through cooperatives and small businesses will be the primary drivers of market share
expansion. GreenFuel wants to grow regionally and establish itself as a leading company in the
briquette sector in the long run (Years 6–10). The goal is to take 3–5% of the market for biomass
fuel overall and 15%–20% of the briquette sector. Semi-automated production, county
expansion, and strategic alliances with government initiatives, non-governmental organizations,
and supporters of green energy will all help achieve this growth. In order to accomplish these
goals, GreenFuel will employ a number of strategies. To reduce the cost of raw materials and
transportation, localized production centers will be set up in regions with a lot of agricultural
waste. To expand reach and penetration, a community-based distribution approach will be
employed, involving youth cooperatives, women's organizations, and boda boda riders. To
encourage product trials, subsidized "starter packs" will be provided to first-time customers.
Briquettes' advantages for the environment, economy, and health will be explained to consumers
through public demonstrations and awareness campaigns. Investing in eco-friendly packaging
and branding will increase the visibility and credibility of the product, while digital channels like
Facebook and WhatsApp will facilitate cost-effective marketing, particularly in rural and
informal settlement regions.

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 Market Share
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 5th Qtr

1% 2%
5%

15%

78%

At the moment, traditional charcoal suppliers hold a 78% market share, with the remaining 14%
coming from other briquette manufacturers. With forecasts showing growth to 2% in the medium
term and 5% in the long term, GreenFuel briquettes currently hold a modest 1% market share.

2.3 Competitors
Chardust Ltd., LeJan Energy Ltd., and regional traditional charcoal vendors are the three main
competitors in the briquette and solid fuel market close to Nakuru.Nairobi-based Chardust Ltd. is
one of Kenya's biggest briquette producers, with a sizable national market share. With some
penetration in Nakuru, they are estimated to have a 5% market share in urban and peri-urban
areas. The primary advantages of Chardust are its sophisticated technology, extensive production
capabilities, and well-established distribution systems. Their focus on large commercial clients,
however, is a weakness that makes them less competitive when it comes to serving low-income
households and small vendors in peri-urban areas like Kaptembwa.Using agricultural waste,
Kiambu-based LeJan Energy Ltd. creates eco-briquettes that are marketed to businesses,
community organizations, and educational institutions. In central and western Kenya, their
market share is believed to be between 2 and 3%. Despite LeJan's strong environmental branding
and collaboration with non-governmental organizations, logistical limitations frequently make
their products more expensive and less accessible in rural or peri-urban areas.In Nakuru and the
neighboring areas, traditional charcoal dealers continue to be the biggest and most established
businesses, controlling a commanding 78% of the market. Their broad consumer familiarity and
ease of use are their strengths. Their main drawbacks, however, are rising prices, environmental
unviability, and expanding governmental regulations on the use and trading of charcoal.

GreenFuel Briquettes will implement a number of crucial tactics in order to counter these
competitors. We will concentrate on targeted, community-based distribution in Kaptembwa and
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the surrounding areas in order to counter Chardust's widespread presence. We will do this by
reaching end users directly through door-to-door sales, collaborations with women's
organizations, and micro-retailers. GreenFuel will make sure that its products are 30–40% less
expensive than charcoal and that their packaging is sized for everyday household use in order to
meet LeJan's cost and distribution issues. With the help of community demos, referral discounts,
and focused marketing on cost and health benefits, GreenFuel will position its briquettes as a
cleaner, more durable, and healthier substitute for conventional charcoal suppliers. Despite
intense competition, GreenFuel Briquettes will be able to establish a solid presence in the peri-
urban fuel market because to this impact-driven, localized strategy.

2.4 Promotional Methods

GreenFuel Briquettes will be successfully promoted in Kaptembwa and the neighboring areas of
Nakuru Town West through a combination of targeted media and promotional techniques that
are adapted to the local environment and reach a wide range of consumers. Our marketing plan
will heavily rely on social media sites, especially Facebook, Instagram, and WhatsApp. Even in
low-income communities, these platforms are commonly used, particularly by small company
owners and younger consumers. They will be utilized to run targeted advertisements, distribute
instructional materials, take orders, and speak with clients directly. We will create and distribute
posters and flyers in both Kiswahili and English in key locations such marketplaces, kiosks,
stores, and boda boda stages in order to reach people without internet access.
We will use local churches, women's organizations, and youth organizations to host community
sensitization forums for public relations. We will be able to demonstrate the product, discuss its
advantages versus charcoal, and foster community trust through these forums. We will also look
to work with regional NGOs that promote environmental preservation and green energy, such
KCIC and WWF. These collaborations will increase the legitimacy of our brand and could lead
to joint awareness campaigns or financial opportunities.
When it comes to sales promotions, we'll use introductory deals like "Buy 3, Get 1 Free" to draw
in new clients and introduce a loyalty card program for regular consumers and small food sellers.
Additionally, a referral program will be launched, offering small rewards like free or discounted
briquettes to consumers who recommend new clients. These strategies will promote regular
business and aid in growing our clientele through word-of-mouth.
With the use of WhatsApp broadcast lists and SMS campaigns, we will be able to communicate
with our clients directly on a weekly basis about specials, stock availability, and usage advice. In
order to establish and expand this communication network, contact details will be gathered
during the initial sales. Lastly, a crucial component of our plan will be personal selling. We will
teach women's organizations and young people in the area to work as field sales representatives,
delivering product demos and door-to-door marketing. Additionally, they will set up stall
displays on market days so that customers can ask questions, engage with the goods, and see live
burning tests. This individualized, practical method works particularly well for educating new
users about the advantages and functionality of our briquettes in comparison to conventional
charcoal. In addition to promoting a cleaner, more sustainable fuel alternative, GreenFuel
Briquettes will forge deep bonds with its target population by blending grassroots participation
with digital and direct marketing.

2.5 Pricing Strategies

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We will mix aspects of cost-plus pricing and penetration pricing with a value-based pricing
strategy to determine the price of GreenFuel Briquettes. This strategy covers production costs
and permits steady profit growth while guaranteeing that our product stays inside our target
market's price range.First, a baseline price will be set using cost-plus pricing. A kilogram of
briquettes is expected to cost about KES 30 to produce, including labor, raw materials, packing,
and shipping. We will set the initial retail pricing at KES 45–50 per kilogram by adding a small
profit margin of KES 15–20 per kilogram. This pricing keeps the goods competitively priced
while guaranteeing the business's sustainability. Second, by highlighting the advantages our
briquettes have over traditional charcoal, we will use a value-based pricing strategy. In practical
application, GreenFuel Briquettes are more economical due to their smokeless, longer-burning,
and healthier characteristics. We can defend prices that could first appear comparable to or
marginally less expensive than charcoal while providing better value per unit by informing
consumers about these extra benefits, which include shorter cooking times, less health hazards,
and fuel volume savings.We will also employ a penetration pricing plan in the early stages of the
product's first appearance. This is providing short-term discounts and package offers (such as
"Buy 3, Get 1 Free") to promote initial purchases and swiftly increase market share. This tactic is
essential for persuading those who are hesitant or uninformed about briquettes to utilize charcoal.
We can gradually phase out introductory deals while keeping a competitive standard price once
customer trust and demand have been established. GreenFuel Briquettes will continue to be
affordable for low-income homes and small companies in Kaptembwa because to this blended
pricing model, which is based on cost coverage, value delivery, and market entry. It will also
foster customer loyalty and guarantee the long-term viability of the company.
2.6 Distribution
In order to guarantee effective product availability, customer accessibility, and sustainable
growth, GreenFuel Briquettes will utilize a staged distribution plan that spans the short, medium,
and long term. The emphasis will be on direct distribution strategies in Kaptembwa and the
surrounding estates in the short term (0–6 months). This will involve setting up market-day stalls
in busy places like Kaptembwa Market and having trained local youth and women's groups sell
door-to-door. Additionally, we will provide briquettes directly to mama mbogas and small food
vendors that depend significantly on charcoal for everyday cooking. Because they enable us to
inform clients, establish trust, get feedback, and keep strict control over the sales process, these
direct techniques are perfect for the launch period. They also aid in building our first clientele
and reducing distribution expenses. As demand increases over the next six to eighteen months,
we will turn to indirect distribution techniques to broaden our reach and improve convenience.
Customers can purchase briquettes where they now shop by supplying them to neighborhood
shops, kiosks, and agro-vet stores. Additionally, we will target institutional clients that need
regular bulk supply, like food kiosks, poultry producers, and schools. In this stage, we will
launch digital ordering platforms via SMS and WhatsApp, allowing clients to place orders for
delivery to their homes or places of business. Our team's logistical load is lessened by these
techniques, which also enable more reliable, broad product availability.

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We intend to construct a regional distribution network with local depots or distribution hubs
spread over many towns and wards in the long run (18 months and beyond). In order to supply
briquettes outside of Nakuru West, we will collaborate with local wholesalers, SACCOs, and
resellers to reach communities like Naivasha, Gilgil, and Molo. In order to incorporate
GreenFuel Briquettes into conventional retail settings, we also plan to investigate joint ventures
with supermarkets and petrol sellers. We anticipate having better logistics and production
capacity at this point, which will enable us to serve a wider clientele while preserving the level of
quality and affordability of our products. These distribution strategies have been carefully
selected for their scalability, cost-effectiveness, and compatibility with regional purchasing
patterns. Early on, direct selling is the most effective method for educating customers and
establishing trust. Retail and online channels improve accessibility and convenience as
awareness rises. Over time, depots and wholesalers offer the framework required for regional
growth. This methodical approach will assist the company's long-term sustainability and impact
goals while guaranteeing that GreenFuel Briquettes are continuously available to customers.
2.7 Sales Tactics
The main objectives in the short term (0–6 months) are to raise awareness, build confidence and
convert new users. We will use aggressive grassroots marketing strategies, including door-to-
door sales, community demonstrations, and market-day promotions in Kaptembwa, to
accomplish this. In order to promote experimentation and lower the perceived danger of moving
from charcoal to briquettes, we will provide introductory offers like "Buy 3, Get 1 Free."
Furthermore, a referral program will compensate clients who introduce new consumers, utilizing
word-of-mouth as an affordable yet effective sales strategy. In order to swiftly improve product
offerings and messaging, our team will also get direct client input. As product acceptance and
awareness increase over the medium term (6–18 months), attention will turn to broadening the
product's reach and enhancing its convenience for both new and returning customers. To make
briquettes easily accessible in the neighborhood, we will include dukas, agro-vet stores, and
neighborhood merchants as sales channels. In order to make recurring orders and delivery easier,
particularly for small businesses and large purchasers, we will simultaneously create an ordering
system via WhatsApp and SMS. We will implement loyalty cards or bonus incentives for
frequent purchasers, especially food sellers and small restaurants, in an effort to keep devoted
patrons. In order to greatly increase sales volume, we will also start focusing on institutional
clients like cooperative kitchens, schools, and poultry farms, which have higher fuel
requirements and need a steady supply. Long-term (18 months and beyond), the strategy will
concentrate on expanding into new markets and growing the company geographically. In order to
expand our sales footprint, this will entail establishing distribution centers in additional areas of
Nakuru County and the surrounding areas as well as forming alliances with wholesalers,
SACCOs, and neighborhood-based resellers. In order to promote large-scale orders, we will also
look into potential corporate collaborations, such as with supermarkets, government feeding
programs, or sustainable energy NGOs. We will spend money on consumer education initiatives
that highlight long-term savings, health advantages, and environmental effect in order to further
increase brand loyalty and customer retention. In order to reach a range of income levels and

18
usage habits, we will also vary the packaging choices and product sizes, which will enable us to
reach new market niches.

2.8 SWOT Analysis

Key internal strengths and weaknesses, as well as external opportunities and threats that
potentially have an impact on the company, are highlighted in the SWOT analysis of GreenFuel
Briquettes. One of GreenFuel's advantages is that it provides a sustainable and environmentally
beneficial product that is made solely from agricultural waste and does not require any
deforestation. Because the briquettes are affordable they cost 30–40% less per kilogram than
charcoal—low-income residents and small enterprises find them appealing. They provide
superior interior air quality and are long-burning, smokeless, and healthier. The community-
driven strategy, which ensures local ownership and employment development by involving local
women's organizations and youth in manufacturing and sales, is another significant strength. The
project's legitimacy is further increased by the founder's strong expertise in environmental
science and community-based environmental activity. Additionally, the company's low startup
costs make it practical in peri-urban areas such as Kaptembwa. There are a few internal
weaknesses to take into account, though. Early on, the ability to meet demand may be hampered
by the manual briquetting equipment' limited output capacity. Being a new company, GreenFuel
is not well-known in the industry and will have to put in more effort to gain the trust of
consumers. Due to their familiarity with charcoal, many potential customers would be reluctant
to move to briquettes, necessitating extensive teaching and demonstration efforts. Furthermore,
inefficiencies in production and quality control during the initial phase may result from the
absence of automated operations. Externally, there are plenty of growth prospects. Clean
alternatives are encouraged by the growing price of charcoal and the tightening of government
regulations on fuel derived from trees. Green energy projects are also receiving a lot of
financing, subsidies, and incubation programs from the government and non-governmental
organizations. In Kenya's agricultural areas, raw materials are widely accessible and offer a
consistent supply for manufacturing. Positioning GreenFuel as a cleaner, more intelligent option
is made possible by the growing public awareness of environmental and health issues.
Furthermore, there is still a lot of untapped potential in many rural and peri-urban markets. The
company also has to deal with some external threats. There will be strong competition from
traditional charcoal dealers and briquette manufacturers who may have more established supply
networks or lower costs. Consistent demand may also be impacted by seasonal income
fluctuations in low-income areas. Operations may be impacted by weather-related delays in
transportation or shortages of raw materials. Lastly, administrative obstacles to expansion may
come from regulatory difficulties such unanticipated changes in licensing requirements or delays
in getting permissions.

19
 CHAPTER THREE
ORGANIZATIONAL AND MANAGEMENT PLAN
3.0 Organizational Structure
GreenFuel Briquettes' organizational structure is made to guarantee effective administration,
clear reporting lines, and successful fulfillment of the business's objective of providing peri-
urban Kenyan villages with affordable, clean energy. The CEO and Founder is at the top of the
hierarchy, providing strategic guidance, managing the expansion of the business, and
guaranteeing compliance with environmental and community impact objectives. The Operations
Manager, Sales & Marketing Manager, and Finance & Administration Officer are the three main
managerial positions that answer directly to the CEO. The entire production process must be
supervised by the operations manager. Under them is the Production Supervisor, who oversees
the Production Workers directly and makes sure that the quantity and quality of briquettes
produced are always the same. Product availability and operational efficiency are guaranteed by
this chain. Strategies for customer acquisition, awareness, and retention are led by the sales and
marketing manager. The Community Outreach Coordinator, who oversees the company's
grassroots marketing initiatives, such as product demos and community gatherings, reports to
this manager. The Field Sales Agents, who are usually selected from neighborhood women's and
youth organizations, work beneath the coordinator and use direct consumer contact, market-day
sales, and door-to-door marketing to build trust and encourage acceptance. Budgeting,
bookkeeping, procurement, and compliance are all under the direction of the Finance &
Administration Officer. The bookkeeper/inventory clerk supports this position by keeping track
of financial documents and controlling inventory levels to ensure accountability and reduce
waste. GreenFuel Briquettes is able to retain close relationships with its target market and remain
flexible in its operations thanks to this hierarchical yet community-integrated structure. It
encourages responsibility at all levels and gives local stakeholders the ability to actively
participate in the company's success.

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21
3.1 Management Team
Table 3.1 Management Team
Title Roles and Qualification Salary and
Responsibilities and Experience Incentives
CEO Supervision over At least five No salary or
strategies, years of Bonus will be
business growth, experience in an paid first to save
effect environmental / money.
compliance, and social business
leadership in the and a Degree in
community. Business
Administration.

Operations Watches over A Degree in A total of KES

Manager the quality and Operations 50,000 (KES
quantity of Management, a 45,000
output and runs Diploma in mandatory plus
the production Engineering and KES 5,000
teams and an experience of performance
operations. three years. reward)

Sales and Takes charge of A Degree in A total of KES

Marketing outreach teams, Marketing and a 40,000(Base
Manager marketing Diploma in salary of KES
activities, and Business 36,000 plus sales
customer Management reward of KES
acquisition. and an 4,000)
experience of
three years.
Finance and Takes charge of A Degree in A total of KES
Administration inventory Finance and a 38,000(Base
Officer control, Diploma in salary of KES
bookkeeping, Business 35,000 plus a
compliance, Management performance
budgeting, and and an reward of KES
procurement. experience of 3,000)
three years.
Source: Author (2025)

22
3.2 Other Personnel
Table 3.2 Other Personnel
Title Number Roles and Qualification Salary and
Responsibilities and Experience Incentives
Production 1 Handles A Diploma in A total of KES
Supervisor production Technical Field 28,000(Base
employees, and an Salary of KES
maintains output experience of 25,000 plus KES
and moisture two years. 3,000 bonus for
levels, and achieving output
applies quality and quality
control. requirements.)

Production 3 Stack briquettes, Secondary A total of KES

Employees mix materials, education or 21,000 with a
(Manual feed a basic training for Salary of KES
Briquetting) briquetting a job. 7,000 for each
machine, control employee.
moisture, and
keep things
hygienic.

Community 1 Plans A Diploma in A total of KES

Outreach community Community 25,000(Base
Coordinator demonstrations, Mobilization and salary of KES
works with an experience of 23,000 and KES
youth and two years. 2,000
women's commission on
organizations, outreach events
and gathers that resulted in
client feedback. sales.)

Field Sales 3 In charge of Strong local A total of KES

Agents market-day connections, 24,000 plus a ten
booths, door-to- secondary percent sales
door sales, advantage and commission on
gaining referral sales skills. sales.
clients, and
receiving
product orders.

Bookkeeper 1 Monitors stock A Diploma in A total of KES

levels, keeps accounting and 22,000(Base
track of an experience of salary of 20,000
inventories, and two years. and KES 3,000

23
 helps the finance performance
officer with bonus for
bookkeeping and maintaining
financial record- correct records.)
keeping.

Source: Author (2025)

3.3 Human Resource Management Strategies
3.3.1 Recruitment and Selection
When it comes to recruiting, GreenFuel will give priority to speed, affordability, and community
involvement during its introduction phase. For the recruitment of production employees, field
sales agents, and outreach staff, the team will mostly rely on unofficial, locally trusted sources,
including word-of-mouth recommendations, local church networks, youth and women's
organizations, and community leaders. Local talent will be reached through the distribution of
job posters and leaflets at markets and boda boda stages, as well as notifications on WhatsApp.
Simple phone or in-person screening will be used for selection, and candidates will be evaluated
quickly through short trial shifts or hands-on mini-tests (such assisting with briquette mixing or
conducting outreach demos). Formal resumes are less important than character and local
reputation. With this strategy, GreenFuel can quickly increase operational capacity, reduce
administrative workload, and cultivate community trust without the need for traditional HR
systems. GreenFuel's hiring process will change to a structured, merit-based model that puts
competency, fit, and transparency first as it grows and matures. Over time, hiring for technical,
management, and supervisory positions will gradually move to digital job boards like Stellar HR,
LinkedIn, and BrighterMonday, which are frequently used by Kenyan SMEs for effective and
polished hiring. In order to create new talent pipelines, GreenFuel will also formalize an
incentive program for employee referrals and collaborate with nearby colleges and polytechnics.
For senior or leadership positions, the company may use local headhunters or recruitment
agencies to guarantee access to skilled workers. Competency-based job descriptions, structured
interviews with achieving guidelines, and skills-based assessments or mock simulations like
creating a demo batch or giving a community pitch will all be used in the selection process to
ensure thorough candidate evaluation and allow for fair, equal comparisons between applicants.
Additionally, reference and background checks will be accepted for trust positions, especially in
supervisory and financial roles. An Applicant Tracking System (ATS) will probably be
implemented by GreenFuel in order to manage candidate connections, facilitate job posts, and
improve communication. This system will make it possible to track important parameters
including source efficiency, offer acceptance rate, time to hire, and quality of hire, reducing
manual errors and encouraging data-informed decision-making. Lastly, the business will spend
money on employer branding. GreenFuel will increase its appeal to top talent who value social
purpose and professional growth opportunities by showcasing its mission, impact, core values,
and workplace culture on social media sites like Facebook, Instagram, and LinkedIn. This is a
strategy that is generally advised for contemporary SMEs in Kenya.

24
3.3.2 Training and Development
To quickly develop team abilities, GreenFuel will mostly rely on internal, hands-on training in
the short term (0–6 months). The Production Supervisor and Operations Manager will coordinate
hands-on, on-the-job training in equipment handling, quality management, moisture control, and
manual briquetting procedures. Direct training sessions in community engagement techniques,
sales demonstrations, referral bonuses, and product usage messaging will be held concurrently by
the Sales & Marketing Manager and Community Outreach Coordinator. The Finance Officer and
the bookkeeper will mentor each other through an apprenticeship-style program to teach
financial procedures, bookkeeping, and inventory monitoring. During the first four to six weeks,
these weekly sessions will be very intense. As systems stabilize, they will go into monthly
refreshers. The overall cost is estimated to be between KES 5,000 and KES 10,000, with the
majority of the expenses being restricted to printed training materials and refreshments.
GreenFuel's training gets more structured, competency-based, and often outsourced as it moves
into the long-term growth phase (6+ months). Key management personnel (CEO, Operations
Manager, Sales & Marketing Manager) will participate in organized leadership courses that
emphasize team leadership, strategic management, and board effectiveness. These courses are
often provided in Kisumu or Nairobi and last five days and cost about KES 150,000 per
participant. Sessions for team capacity-building and technical production workshops will be held
locally or in-house and will cost approximately KES 30,000 to KES 50,000 each. Biannual
refresher workshops and infrequent training sessions for new skills, such moisture monitoring or
customer service, will be attended by operational staff. The total estimated yearly training cost
for this phase is KES 180,000 to KES 200,000, which includes materials, facilitation fees,
technical upskilling, and leadership development.
3.3.3 Remuneration and Incentives
The approach to deciding employee rewards at GreenFuel Briquettes is based on the ideas of
performance, skill development, and length of service. In reality, we conduct frequent
performance reviews, starting quarterly and advancing to twice a year or annually as the business
expands. Managers and staff members talk about performance outcomes during these reviews,
highlighting significant accomplishments, skill development, team goal contributions, and
adherence to corporate principles. Transparency and equity are ensured through the use of
competency-based assessments, transparent performance measures, and job-specific criteria.
This strategy is similar to well-established procedures in Kenya, where tying appraisals to
deserved pay and promotions has been shown to be a successful way to inspire employees and
build confidence. The company provides a range of financial incentives, including commission
opportunities, profit-sharing components, performance-linked bonuses, and merit-based pay
increases. For instance, commission-based reward, which is calculated as a proportion of sales or
new clients obtained (usually 10–15%), can be earned by sales and outreach positions, such as
field agents and the sales manager. Gain-sharing bonuses, which compensate teams for
exceeding production goals or cutting down on material waste, may be available to production
employees who are tied to output quality. Bonus pools that range from 10% to 20% of the annual

25
base salary are common merit incentives in Kenya and other SMEs at the management level,
provided that individual and business goals are fulfilled. Similar to merit-based pay increases,
salary increases are linked to years of service, proven skill acquisition, and eligibility for
promotions, offering long-term recognition in line with organizational expansion. Additionally,
non-monetary rewards are a key component of our motivational approach. Employee-of-the-
month awards, certificate-based commendations, and public acknowledgment during team
meetings all serve to reward good work and promote job satisfaction. Research from Kenya has
shown that this strategy increases dedication and productivity. In order to help employees see
clear career advancement and capacity building which is particularly crucial in social enterprises
we also provide professional development options, such as training, mentorship, or attendance at
appropriate workshops. Flexible scheduling or occasional time-off awards, such as extra lunch
breaks or half-days following outstanding performance, are additional non-monetary benefits
that reflect incentive tactics promoted by company executives as effective but affordable
motivators. When employees surpass goals or show initiative, we might give them branded items
or small tokens (like T-shirts, gift cards to nearby stores, or safe transportation vouchers) to show
our appreciation and make a lasting difference.
3.3.4 Promotion
GreenFuel Briquettes will use a clear set of promotion criteria, including service employment,
consistent performance, and demonstrable skill improvement, when evaluating candidates for
promotion. Employees who are being considered for promotion, for example, should
demonstrate an excellent track record of reaching or surpassing goals, demonstrate technical
competence or leadership abilities in their current roles, and demonstrate a consistent level of
dedication. These standards are in line with outside best practices, like competency-based
assessments and merit appraisals that emphasize measurable accomplishments and room for
improvement. GreenFuel will give internal promotion priority for most junior or mid-level
positions in order to retain institutional knowledge, reward loyalty, and raise morale. Promoting
personnel internally makes financial sense since it lowers administrative and onboarding
expenses, ensures a cultural fit, and speeds up ramp-up time because promoted staff members are
already familiar with the company. Additionally, it lets employees know that their efforts and
skill development are valued, which lowers turnover and increases loyalty to the company.
However, external hiring will be employed carefully for highly technical, specialist, or
leadership roles where the company's internal talent pool may not yet fulfill needs. In order to
spark creativity and cover gaps that internal candidates might not have yet addressed, new hires
might contribute essential skills, creative viewpoints, and best practices. According to research, a
well-rounded strategy that incorporates smart external recruitment and internal promotions
promotes sustainable growth by increasing diversity, avoiding stagnation, and bringing in fresh
expertise when required. Finally, due to financial limitations, employee motivation, and cultural
continuity, GreenFuel will promote internally wherever possible. An external candidate will only
be considered by the organization if the particular function requires expertise that is not already
accessible within the team. Regardless of whether the candidate is internal or external, the
evaluation criteria will always be the same, and the process will always be open, merit-based,

26
and inclusive. This hybrid approach supports both external innovation and internal professional
development while guaranteeing a perfect match for each post.

3.3.5 Change Management and Conflict Resolution

By defining goals, involving leadership, involving staff in planning and trials, offering training,
and reinforcing new behaviors through standard operating procedures and recognition schemes,
GreenFuel Briquettes will manage organizational change in an organized yet participatory
manner, based on Lewin's "unfreeze–change–refreeze" model and Plan-Do-Check-Act cycles.
Employees will be empowered to promote ownership and lessen resistance throughout
transitions through open forums, feedback channels, and transparent communication. Clear role
definitions and expectations, early detection systems, and structured dialogue strategies like
active listening and empathy-based mediation will all be used to proactively address conflict.
Drawing on Kenyan management techniques such as negotiation and alternative dispute
resolution, our resolution method will prioritize uncovering the underlying causes, encouraging
win-win or collaborative results, and using peer or supervisory mediation prior to escalation. In
accordance with Kenyan standards for fair workplace harmony, formal arbitration or outside
mediators may be used if internal resolution is unsuccessful. This comprehensive structure
guarantees that GreenFuel not only successfully adjusts to operational changes but also cultivates
a polite, unified culture that foresees and resolves disagreements in a positive manner.
3.4 Support Services
Essential non-core activities like bookkeeping, payroll, basic accounting, marketing design, and
digital system development (such USSD ordering platforms) will be selectively outsourced by
GreenFuel Briquettes to freelancing experts and certified Kenyan providers. In addition to
receiving professional assistance without incurring fixed staffing expenditures, this allows the
internal team to stay concentrated on the organization's key skills. Within a tight budget,
outsourcing IT and financial duties guarantees flexibility, compliance, and operational focus. To
improve its regional market readiness, GreenFuel will simultaneously take advantage of aid-to-
trade programs and SME assistance initiatives. These include the TradeConnect Initiative, which
provides logistics and market facilitation services through KNCCI, TradeMark Africa, and
KAM; connects exporters to intra-African trade pathways under the African Continental Free
Trade Area (AfCFTA); and aggregates SME products for scale. In order to increase its capability
for e-commerce and online market expansion, the company will also participate in ITC's SME
Trade Academy and ecomConnect digital training programs. These resources provide essential
tools for trade penetration, market information, networking, and training. GreenFuel maintains
its responsiveness, lowers fixed overhead, and gets ready for scalable, legal expansion into
regional agricultural and institutional markets by combining participation in local trade
facilitation and training programs with outsourcing for specialized support. This allows the
company to support women- and youth-led entrepreneurship and take advantage of Kenya's
expanding trade ecosystem.

27
3.5 Licenses Permits and By-Laws
In order to conduct business legally and responsibly, GreenFuel Briquettes shall adhere to all
applicable laws in Kenya. A sole proprietorship must first register through the eCitizen site,
which costs about KES 950, and a private limited company must pay about KES 10,650. When
GreenFuel first starts up, it will operate as a sole proprietorship before growing into a limited
company. Second, the company needs to get a County Single Business Permit from the county
government of Nakuru. These permits are appropriate for minor industrial activities in Kenyan
counties and usually cost between KES 4,000 and KES 16,000 per year, depending on the
operation size and classification. As required by the Environmental Management and
Coordination Act (EMCA), GreenFuel may also need an Environmental Impact Assessment
(EIA) and a NEMA access permit, particularly if switching to semi-automated briquetting
production. Depending on the size of operations, this permit can cost several tens of thousands of
shillings and must be renewed annually. Although it's not always required, the company should
be ready to get a public health inspection certificate if it makes briquettes, especially if it
involves packaging or operations near food; similar small enterprises report yearly expenses of
between KES 10,000 to 13,000.

28
CHAPTER FOUR
PRODUCTION AND OPERATION PLAN
4.1 Plant Facilities and Equipment
Table 4.1 Plant Facilities and Equipment
Equipment Quantity Cost Per Item Source

Manual Briquetting 1 KES 20,000 Around Nairobi

Press
Small electric 1 KES 120,000 Biashara Poa
briquette machine
Moisture meter 1 KES 11.000 Jumia
Material Crusher 1 KES 80,000 Industrial Area
(Hammer Mill)
Drying Racks Several KES 100,000 Within Nairobi
Packaging and 1 Set KES 25,000 Within Nairobi
Weighing Scales.
Safety Equipments Multiple KES 10,000 Within Nairobi
(masks, gloves etc)
Workshop tools and Several KES 50,000 Within Nakuru
furniture
Source: Author (2025)
4.2 Plant Layout

Reception/ Lounge Office Area Packaging/ Storage

Area

Briquette Production Storage Area

29
4.3 Production/ Operation Strategies
GreenFuel will use a combination of process optimization, equipment upgrades, quality
controls, input management, and employee training, guided by technical research and Kenyan
best practices, to increase briquette production as GreenFuel Briquettes grows. First, it's crucial
to guarantee constant input quality. To guarantee consistent densification and reduce machine
downtime due to blocked machinery, we will use crushers and moisture meters to standardize
moisture levels (preferably 10–15%) and particle sizes. Briquette integrity and energy value are
also preserved by a constant input mix. Then, in order to smooth out feed interruptions and
enhance production flow, we will use buffer zones and staging before the briquetting press. This
is similar to hybrid process control systems, which maximize efficiency without raising
operational costs. To reduce difficulties, materials will undergo a sequential process of milling,
mixing, briquetting, conditioning, and drying. Low-tech sun drying racks or hybrid dryers with
insulated chambers and forced airflow will be used for drying. Research indicates that these
dryers can elevate interior temperatures to 50–60°C and greatly improve drying efficiency,
reducing drying time from 4–5 days to 2-3 days. This speeds up turnover and lessens spoiling.
We will continue to support manual production systems in the early stages but, as demand
increases, we will switch to semi-automated or motorized briquette presses for increased
throughput and reliable compaction, backed by proper training and maintenance procedures. In
order to attain the recommended durability and smokeless burning, as reported in field tests, we
will also routinely test briquettes for strength, moisture, burning rate, and ash content while
adhering to ideal binder ratios, such as sawdust-bagasse mixes with starch or clay binders. To
increase operational uniformity and reduce errors, standard operating procedures (SOPs) for
safety, machine handling, mixing ratios, and quality checks will be incorporated with ongoing
worker training. Last but not least, we will form strategic alliances with regional farmers and
community suppliers to enhance scalability and raw material consistency. This would resemble
input value chain models promoted by REEEP in Kenya, ensuring a steady supply of biomass
throughout the year and encouraging dependability.
4.4 Stages of Production
The first step in the production process is gathering and arranging raw biomass from local farms
and agro-processors, such as sawdust, sugarcane bagasse, and corn cobs. These materials are
screened and dried using either rotary/airflow dryers or basic open-air solar drying until the
moisture content drops to about 8–12%, which is the ideal range for premium briquetting. In
order to achieve constant compression and briquette density, the feedstock is then crushed or
milled into equal particle sizes, usually ranging from 2 to 10 mm. To achieve uniformity and

30
adequate binder spreading, a mixing step is required if several biomass types are employed,
possibly involving natural binders like starch or molasses.

After preparation, the mixture moves on to the briquetting stage, where it is compressed by high
heat and pressure in a manual or semi-automated press, softening the natural lignin and creating
compact, equal logs or pellets without the need for artificial binders. After being freshly pressed,
the briquettes are cooled and cured, either passively or with a small amount of airflow, to
maintain their hardness and shape and to eliminate any remaining moisture. Before being
distributed, the briquettes are lastly packaged, usually into sacks or bulk storage, and kept in a
dry, well-ventilated environment to maintain their quality and fuel worth. In order to improve
efficiency and uphold standards, GreenFuel will use quality control checks at these phases, such
as monitoring moisture, testing combustion, and assessing briquette durability, in addition to
conducting ongoing process reviews. If the company grows to produce greater calorific
briquettes, optional improvements like carbonization or decomposition might be added later.
GreenFuel Briquettes is able to create a strong, consistent production system that is appropriate
for regional conditions and long-term expansion thanks to this organized, scalable workflow.
4.5 Quality Regulation Strategies
By adopting a thorough quality assurance plan into each stage of manufacturing, GreenFuel
Briquettes will guarantee that its customers receive high-quality briquettes. Controlling raw
materials is essential, to start. To guarantee uniformity and fuel efficiency, GreenFuel will
standardize input by choosing clean, contaminant-free materials and closely monitoring moisture
levels (aiming for less than 10%), particle size (6–12 mm), and ash content (less than 8%) Pure
Sawdust Briquettes. By taking these precautions, problems like inadequate compaction, briquette
weakness, or machine blockage are avoided. Standard Operating Procedures (SOPs) then
regulates every step of the production process, from blending and crushing to pressing and
drying. SOPs will specify conditions for temperature, pressure, and compression ratios, reducing
batch-to-batch variation and guaranteeing consistent energy value, shape, and density (4500
kcal/kg+). The team will perform quality control tests at key checkpoints during production. This
includes determining the moisture content, testing the density (1.2–1.4 g/cm³), checking the
compressive strength, and evaluating the energy value and ash content to ensure compliance with
standards like ISO 17225, which is adopted by KEBS (Kenyan standards). Once each batch or
shift, samples will be taken on a regular basis for examination, providing quick input for
production modifications. Equipment testing and maintenance will be planned on a regular basis
to ensure consistent performance. Regular maintenance will be performed on moisture meters,
crushers, and briquetting presses to maintain quality and avoid operational issues that could
lower quality. Continuous training and development for employees support the emphasis on
quality. To guarantee proper machine operation, mixing ratios, safety precautions, and quality
inspection methods, staff will adhere to SOPs and get frequent training. Regular reviews, SOP
updates, and team-wide learning will all help to create a culture of quality. Last but not least,
GreenFuel will embrace a continuous improvement mentality, using a Plan-Do-Check-Act
(PDCA) cycle to assess production results, get input from clients, and gradually enhance

31
methods. This repeated procedure improves product standards, increases efficiency, and
decreases material waste.

4.6 Trademark and Logo

32
 CHAPTER FIVE
FINANCIAL ANALYSIS AND PLAN
5.1 Financial Objectives
GreenFuel Briquettes has set a number of important financial goals to guarantee the long-term
viability and expansion of the company. First, during the first six months of operation, the
company wants to break even each month. This entails making enough money each month to
reliably pay for all running costs, such as employee salaries, the price of raw materials,
electricity, and logistics. Reaching this goal ahead of schedule will confirm the business plan and
lay the groundwork for future growth and investments. Second, at the close of its first year,
GreenFuel wants to keep its gross profit margin at or above 35%. This will be accomplished by
closely controlling production costs and guaranteeing labor and material efficiency, enabling the
company to continue making a profit while providing its clients with reasonably priced clean
energy. Without sacrificing quality or cost, a strong profit margin will also allow the business to
make investments in employee incentives and equipment upgrades. Thirdly, during the first year,
the organization wants to increase monthly sales income by 10% each month. Strategic
community outreach, a growing field sales team, and rising peri-urban market demand will all
contribute to this expansion. Supporting staff expansion, business scalability, and wider
community impact all depend on steady revenue growth. Lastly, by the end of its second year,
GreenFuel hopes to have accumulated enough cash to cover three months' worth of running
costs. A financial guard against unforeseen disruptions like supply chain problems, seasonal
variations, or economic shocks will be provided by this reserve fund. During difficult times, it
will also support operational stability, timely employee payments, and business continuity.
5.2 Financial Strategies
GreenFuel Briquettes will employ a combination of low-risk, community-focused, and cost-
conscious tactics suitable for a small, early-stage social enterprise in order to successfully raise
and manage funds. In order to pay for the initial equipment purchase, rent, licenses, and basic
operations, the company will mostly rely on founder capital and personal savings during the
starting period, which is projected to be around KES 300,000. This method lowers the risk of
early debt and gives decision-makers more freedom. To support this, GreenFuel will look for
grants and start-up funds from regional and global non-governmental organizations or
accelerators that specialize on clean energy, like the Global Alliance for Clean Cookstoves,
KCIC GoGreen Fund, or KCIC (Kenya Climate Innovation Center). The company's grant target
range is KES 200,000 to KES 500,000, which is reasonable for small, community-impacting
business with a strong focus on climate change. These money will be utilized to scale
production, buy better drying systems, and increase outreach. GreenFuel will also apply for asset
financing or low-interest microloans through regional SACCOs or microfinance organizations

33
like Faulu Kenya or Kiva. To manage cash flow, particularly for large orders or bulk purchases
of raw materials, a working capital loan of KES 150,000 may be arranged.

Maintaining liquidity is essential since the production of briquettes requires labor-intensive

procedures and the frequent acquisition of raw biomass. To prevent pressure, the company will
spread out debt servicing within 15% of monthly cash flows and spread out repayments over 12
to 18 months. GreenFuel will put fundamental financial management measures in place right
away in order to handle finances effectively. With the help of the bookkeeper, the finance and
administration officer will monitor revenue, expenses, and inventory using basic accounting
programs like Excel or cloud-based programs like Wave or QuickBooks. To help predict gaps,
allocate resources, and prevent overextending the company, monthly cash flow projections will
be updated on a regular basis. In order to prevent waste or overstocking, the team will analyze all
procurements and apply stringent cost controls, particularly on utilities, packaging, and
transportation. A reserve of 10% of monthly net income will also be regularly set aside to create
an emergency fund in case of unanticipated downturns or future expansion. GreenFuel will
create quarterly financial reports and hire outside experts to perform informal audits once a year,
which would cost between KES 15,000 to KES 25,000, in an effort to boost financial
transparency and investor confidence. This encourages responsibility and gets the company
ready for responsible growth. With the aim of becoming operationally self-sufficient by month
six, the company will progressively reinvest earnings (instead of taking on debt) into purchasing
a semi-automated press, recruiting more employees, and launching official marketing campaigns
as client demand increases.
5.3 Pre-operational Costs
A number of crucial pre-operational expenses will be incurred by GreenFuel Briquettes in order
to get the company ready for launch and guarantee an easy beginning to production and sales
activities. These expenses, which are projected to be around KES 491,000, are thoughtfully
distributed to assist essential areas including facility setup, legal compliance, equipment
acquisition, and first marketing. The purchase of essential manufacturing equipment, such as an
electric briquette machine, a manual briquetting press, a hammer mill crusher, drying racks,
packing tools, safety gear, and a moisture meter, will account for a sizeable amount of the
budget, approximately KES 316,000. It will cost about KES 50,000 to set up the workshop with
the necessary equipment and furniture, guaranteeing a productive and orderly workspace. The
company will spend about KES 15,000 on registration and acquiring the required licenses and
permissions in order to comply with regulatory standards. Pilot production and product testing
will be supported by a KES 25,000 starting raw material supply. GreenFuel has also set aside
KES 10,000 for staff orientation and practical training in order to increase new team members'
operational readiness. About KES 20,000 will be needed for early branding, product packaging
design, and marketing materials; KES 30,000 will likely be needed for community engagement
and launch demonstrations. A contingency fund of KES 25,000 has also been established to
cover unforeseen costs. In order to build GreenFuel's production capacity, community presence,
and operational stability right away, these pre-operational investments are essential.

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5.4 Proforma Income Statements

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5.5 Proforma Balance Sheet
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5.6 Cash Flow Projections
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5.7 Break Even Analysis

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5.8 Business Ratios

5.8.1 Gross Profit Ratio

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5.8.2 Net Profit Ratio

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5.8.3 Return on Assets Ratio

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5.8.4 Current Ratio

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5.8.5 Asset Turnover Ratio

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5.8.6 Debt Ratio

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 CHAPTER SIX
BUSINESS RISKS
6.1 Operational Risk
Despite showing great development potential and a sound financial outlook, GreenFuel
Briquettes is subject to a number of operational risks that, if not adequately handled, could have
an impact on the company's performance. The supply and price fluctuations of raw materials are
one of the main hazards. Due to the production process's heavy reliance on biomass and
agricultural waste, seasonal availability and competition from other biomass consumers may
result in shortages or higher procurement costs, which could affect production schedules and
profitability. Equipment malfunctions or failures pose a serious risk as well. Even if the company
intends to purchase a semi-automated press to increase productivity, equipment needs to be
maintained on a regular basis, and unplanned malfunctions could cause production to stop for
days or even weeks. If spare parts are hard to find locally, this downtime may result in unhappy
customers, delayed orders, and higher repair expenses. Operational risks are also a result of
human resource limitations. Reliance on a larger and more competent workforce grows as
manufacturing expands up. The efficiency and quality of output may be impacted by difficulties
finding, developing, and keeping qualified employees. Additionally, abrupt staff turnover may
result in talent shortages, interfere with operations, and raise hiring costs.
6.2 Financial Risks
A number of financial concerns could affect GreenFuel Briquettes' capacity to continue
operations and see long-term growth. Cash flow volatility is one of the main issues. Although the
company anticipates high profits, the briquette industry frequently faces demand swings related
to seasonal variations and bulk purchasers' buying cycles. Payment delays from customers,
particularly from institutional clients, may result in short-term financial shortages that make it
difficult to cover operating costs like hiring employees, maintaining equipment, and purchasing
raw materials. Funding challenges and capital adequacy are yet another major risk. Scaling up
production or switching to more advanced machinery will require more funding, even though the
initial investment and anticipated profits are adequate for early operations. GreenFuel might have
to look for outside funding if its internal cash flow is insufficient. In particular, if loan terms are
unfavorable or market interest rates increase, this could expose the business to interest rate risks
and repayment requirements. Risks of cost escalation is another danger. Inflation, changes in fuel
prices, or supply chain interruptions can all cause unanticipated increases in the cost of energy,
transportation, and raw materials. These increases could lower profit margins because it might be
difficult to modify the briquettes' selling price in the near future without compromising
competitiveness. In addition, activities may be indirectly impacted by foreign exchange rate
risks. Some spare parts, equipment, or technological inputs might need to be imported, even
though the majority of sales and expenses are made in Kenyan Shillings. These imports would
become more costly, raising operating expenses, if the Kenyan Shilling declined in value relative
to other major currencies. Lastly, an excessive dependence on a small customer base poses a risk
to financial sustainability.

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 The loss of one or more of these customers could greatly lower revenues if a small number of
important clients make up a considerable amount of sales. Building dependable, recurrent
contracts and diversifying the clientele will be essential to reducing this risk.
6.3 Compliance and Legal Risks
In Kenya, GreenFuel Briquettes works in a sector governed by a number of laws related to
business, safety, and the environment. Following environmental regulations is one of the main
compliance risks. The National Environment Management Authority (NEMA) has established
environmental regulations that must be followed when handling biomass resources and
emissions from drying processes during the briquette-making process. There may be fines,
business closures, or harm to one's reputation if the necessary permits are not obtained, waste
disposal rules are broken, or emissions are not controlled. Product quality and certification
compliance are further areas of concern. Guidelines like ISO 17225, which outline acceptable
limits for moisture content, ash levels, and calorific value, have been implemented by the Kenya
Bureau of Standards (KEBS) for solid biofuels. GreenFuel may be subject to fines, product
recalls, or a decline in consumer confidence if its goods don't live up to these criteria, particularly
from institutional customers that need certified fuels. Compliance with occupational health and
safety regulations is also essential. If appropriate safety procedures are not followed, handling
equipment such as dryers, briquette presses, and crushers involves a risk of injury. Legal
liability, worker injury claims, or higher insurance premiums could arise from breaking
occupational safety laws. Personal safety equipment (PPE) and regular staff training are
therefore crucial. Requirements for business license and registration must also always be
fulfilled. Operating without the appropriate licenses or neglecting to renew them may result in
fines, legal action, or the liquidation of the business. Costs or administrative problems may also
rise as a result of modifications to tax laws, import taxes (for parts or equipment), or corporate
compliance standards. Lastly, there are risks related to intellectual property and contracts. To
prevent disagreements over costs, delivery schedules, or product specifications, GreenFuel's
contracts with distributors, suppliers, and consumers need to be well-defined. If the business
creates a distinctive brand identity, such as a trademark and logo, it may be vulnerable to
imitation or brand dilution if these assets are not registered and protected.
6.4 Reputational Risks
One of GreenFuel Briquettes' most important intangible assets is its reputation, and any harm to
it could have a long-term effect on sales, market position, and consumer trust. Inconsistency in
product quality is a major reputational concern. Customers may stop trusting the brand, write
unfavorable reviews, or go to competitors if briquettes don't live up to expectations, such as
excessive smoke production, low calorific value, or breaking down during delivery. Negative
headlines surrounding environmental concerns is another significant risk. Since GreenFuel
markets itself as a clean, environmentally friendly energy source, any proof—actual or imagined
—that its activities have a negative impact on the environment, such as inappropriate waste
disposal or excessive emissions, could damage the company's reputation. Such claims might
swiftly harm the company's reputation if they are spread by activist organizations, community
concerns, or social media.

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Inadequate customer service is another danger. Delivery delays, weak complaint management, or
poor client communication can all damage confidence and drive away repeat business. For
NGOs and institutional customers, who frequently have extensive networks and can sway other
possible customers, this is especially crucial. Furthermore, safety events involving employees,
guests, or local communities may result in negative media attention and cast doubt on the
business's operational standards. The impression of risky behavior can spread swiftly, even in
cases when instances are isolated. Reputation might also be impacted by partnership decisions.
Being associated with dishonest distributors, suppliers, or financiers who engage in unethical
activities may reflect negatively on GreenFuel. In the same way, breaking agreements with
community partners may lead to conflict and damage the business's reputation in the
neighborhood.
6.5 Market Risks
Dynamic market dynamics impact Kenya's briquette business, and GreenFuel Briquettes is
exposed to a number of market-related threats that could have an impact on its expansion and
financial success. Demand fluctuations are a major risk. Even though more people are aware of
renewable energy, sales may fluctuate due to seasonal differences in fuel usage, particularly in
rural areas. For instance, during rainy times, when households switch to more affordable or
accessible fuels like firewood or charcoal, demand may decline. Price competitiveness is another
difficulty. The market consists of small, informal businesses with lower overhead expenses that
might sell briquettes at drastically lower prices as well as formal companies with automated
systems. Price competition alone has the potential to reduce margins, particularly in the
beginning while production quantities are still growing. Alternative fuels are dangerous as well.
Because of its familiarity, accessibility, or incentives, many households continue to rely on
charcoal, firewood, LPG, and even kerosene. Briquette sales may decline if these substitutes
become more affordable or available, especially in urban markets. Similar to this, governmental
policy changes—like removing restrictions on the manufacturing of charcoal in particular
regions—may bring unsustainable fuels back into the market. Low consumer awareness and trust
in briquette performance further hinder market penetration. Briquettes are viewed as less
desirable than conventional fuels in some markets, particularly if consumers have already dealt
with poor quality products from other vendors. Consistent quality, marketing, and demonstration
initiatives are necessary to overcome this bias, and these take time and money. GreenFuel is also
subject to concerns related to logistics and distribution. Reliable transportation networks and
reasonably priced distribution systems are essential for regional expansion. In remote markets,
poor road conditions, rising fuel prices, or supply chain interruptions can increase expenses and
decrease competitiveness. Last but not least, macroeconomic variables like inflation, currency
devaluation, or general economic downturns can lower consumers' purchasing power and
increase their willingness to select less sustainable, less expensive fuel options.

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6.6 Technology Risks
GreenFuel Briquettes’ production procedures depend largely on specialized equipment like
crushers, moisture meters, briquetting presses, and drying systems. Equipment failure or
malfunction is a significant risk associated with technology. Production halts, postponed
deliveries, and higher repair expenses might result from mechanical issues, wear and tear, or
inappropriate handling. Due to the early phases' reliance on a limited number of critical
machines, any outage could seriously impair output. Inadequate technical proficiency among
operators is another issue. Employees who lack the necessary training to properly operate,
maintain, and troubleshoot machinery run the risk of using it inappropriately, which could result
in poor briquette quality, increased scrap rates, and possible equipment damage. This is
especially crucial when switching from manual to semi-automated systems because maintenance
and operation become more complicated. Additionally, there is the danger of using outdated or
inappropriate technology. There will be newer, more effective machinery and procedures as the
briquette sector develops. GreenFuel may find it difficult to compete with technologically
sophisticated competitors if it does not promptly implement the necessary improvements, which
could result in high production costs and low efficiency. Similar to this, selecting technology that
is not well suited to regional conditions—for example, needing a premium electrical supply or
pricy imported replacement parts—may result in high operating costs and frequent outages.
Another risk is reliance on energy sources, such as electricity. Production schedules may be
disrupted or sensitive equipment may sustain damage due to power outages, voltage fluctuations,
or rising energy expenses. For semi-automated systems, this danger is especially significant in
Kenya, where certain areas have erratic electrical supplies. Finally, although if they are less
prevalent in small-scale manufacturing, cybersecurity threats should not be disregarded when the
company integrates digital technologies for customer databases, inventory management, and
quality tracking. System malfunctions, illegal access, or data loss could impair operations or
jeopardize private company data.
6.7 Political Risk
Political risks are the possible harm that government acts, policy modifications, or political
unrest could do to GreenFuel Briquettes' business operations and financial success. Changes in
environmental or energy policies are one of the main causes for concern. Even though Kenya
now backs clean fuel and renewable energy projects, future administrations might change tax
laws, subsidies, or incentives, which could affect production costs, prices, and competitiveness.
For example, tighter environmental compliance regulations may result in higher operating
expenses, while the elimination of tax advantages on renewable energy equipment may result in
higher capital expenditures. An additional concern is regulatory uncertainty. Production
schedules and plans for expansion may be affected by inconsistent implementation of current
rules, abrupt changes in policy, or delays in the issuance of licenses. This is especially important
when it comes to biomass procurement, since modifications to laws governing forestry or the
collection of agricultural leftovers may have an impact on the supply of raw materials.

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Post-election tensions or civil unrest are examples of political instability that might interfere with
transportation networks, hinder the supply chain, or even temporarily stop manufacturing. Since
raw supplies come from several places, delays in delivery could result from protests, blockages,
or security issues. Additionally, there is a chance that corruption and ineffective administration
will cause delays in obtaining licenses, customs clearances, or authorization for additional
facilities. Unofficial fees or lengthy administrative processes can add hidden costs and hinder
operational efficiency. Finally, if GreenFuel decides to import machinery or export briquettes in
the future, trade policies and international relations may have an indirect effect on the company.
Profitability may be impacted by import limitations, tariff changes, or changes in currencies
brought on by political events.
6.8 Environmental Risks
Environmental hazards are potential problems that could have an impact on GreenFuel
Briquettes' operations and are caused by natural factors, climate fluctuation, or ecological
regulations. Climate-related disturbances, such as extended rainy seasons, pose a serious risk
since they may disrupt the drying process of briquettes, particularly when open-air or sun-drying
techniques are employed. Excessive humidity can raise the moisture content above ideal limits,
which can slow down manufacturing, reduce the quality of the final product, and increase the
chance of spoiling. Extreme weather occurrences, such as floods, droughts, or storms, are also a
concern since they have the potential to harm manufacturing facilities or interrupt supply lines
for raw materials. For example, droughts may make some biomass leftovers, such as sugarcane
bagasse or maize cobs, less accessible, while floods may prevent access to supplier farms. There
are additional hazards of environmental degradation. Without adequate management,
overharvesting biomass resources could damage ecosystems and cause regulatory or community
backlash. Inadequate management of local biomass supply chains may result in shortages of raw
materials, which would increase manufacturing prices. There's also the possibility of stronger
environmental laws. Tighter regulations on waste management, emissions, and biomass sourcing
may be enforced by governments and environmental organizations. In order to comply with
regulations, it could be necessary to make new investments in waste disposal systems, cleaner
technologies, or enhanced processing techniques. Concerns like trash management and air
quality are also important. Inappropriate handling of briquette dust or byproducts may result in
fines and local environmental issues.

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